PUC Approves Reduced Rate Changes for National Fuel Gas

PUC Approves Reduced Rate Changes for National Fuel Gas

Published on 10/22/2026

Filed under: Gas

Enhances customer assistance and service options, approves a one-time bill credit to low-income customers, and begins an energy-efficiency pilot

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today approved substantially smaller than requested rate changes by National Fuel Gas Distribution Corporation (National Fuel), which provides natural gas distribution services to more than 213,000 customers in parts of 14 counties in northwest Pennsylvania.

By a 4-1 vote, the Commission modified the recommended decision of PUC Administrative Law Judge Katrina L. Dunderdale, resulting in National Fuel's initial rate request being reduced by nearly one half. The Commission also approved a one-time bill credit to low-income customers, authorized a new Energy Efficiency pilot, and directed several enhancements to strengthen National Fuel's customer assistance programs (CAPs) and consumer outreach efforts.

National Fuel last filed for an increase in natural gas distribution rates in October of 2022.

Revenues and Rates

The Commission approved an adjustment of approximately $10.448 million (3.94%) in National Fuel's total annual operating revenues - approximately 47% less than the company's initial request filed with the Commission in February. That request, which sought to boost National Fuel's annual revenues by approximately $19.7 million (7.4%), was eventually adjusted downward by the company to $16.189 million (approximately 6.1%) during the course of this rate proceeding.

Consistent with the Commission's Order, National Fuel will adjust its total annual operating revenues and submit a compliance tariff revising rates for all customer classes, effective for service rendered on and after Oct. 29, 2026, along with any changes to its customer charges.

One-time Bill Credit for Income Eligible Customers

Today's action also authorizes a customer refund in the amount of $7 million as a result of the company over collecting Other-Post Employment Benefits (OPEB) expenses. This includes a one-time $30 credit to low-income customers and an additional surcredit to all customer bills over a one-year period.

Additionally, the Commission directs National Fuel to conduct targeted outreach to all customers receiving a one-time refund credit, in an effort to determine their eligibility for the company's universal service programs.

CAPs and Customer Service Enhancements

National Fuel customers can benefit from several measures to enhance CAPs and overall customer service, including:

• Data tracking related to the total dollars and average dollars in debt carried by CAP customers.
  
  
• A detailed, written plan to fully expend the company's Low-Income Usage Reduction Program (LIURP) budget each year. This plan includes the company extending LIURP eligibility to customers residing in mobile homes.
  
  
• The tracking and reporting of terminations, delays, and denials of service based on health and safety conditions, and the steps taken by the company through its Safety Gatekeeper Program or otherwise, to connect customers who have such conditions on their premises with remediation sources.
  
  
• A plan to increase voluntary contributions to the Neighbor for Neighbor Hardship Fund to be filed with the Commission at the time of National Fuel's next base rate case.
  
  
• A company transition to fee-free online payments for residential customers, with the company absorbing those costs for the purpose of encouraging more customers to adopt online payment methods.

Energy Efficiency Pilot

Beginning this fall, National Fuel will launch a five-year Energy Efficiency pilot offering residential customers rebate incentives to install high-efficiency furnaces, boilers, water heaters and ENERGY STAR certified natural gas clothes dryers in place of standard equipment.

The Commission directs National Fuel to file an annual report containing information on program savings (both Mcf and cost), customer participation, program spending, cost-effectiveness, portfolio highlights, and program delivery updates.

Weather Normalization Pilot

In lieu of granting a company request to make permanent its Weather Normalization Adjustment (WNA) pilot, the Commission is allowing National Fuel to extend its WNA pilot until its next base rate case proceeding. Under the pilot, the WNA will maintain adequate consumer protections and a 5% deadband will apply.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC's website at puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X, Facebook, LinkedIn, Instagram and YouTube. Search for the "Pennsylvania Public Utility Commission" or "PA PUC" on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: R-2025-3059428

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  [email protected]
• David Hixson
  Deputy Press Secretary
  717-772-2766
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